EX-99.1 2 fastnet_8kex99-1.txt EXHIBIT 99.1 In re: FN ESTATE, INC. Debtors. Case No. 03-23143 Reporting Period: April, 2004 Privileged and Confidential Information May Be Included UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. MONTHLY OPERATING REPORT ($ IN REAL NUMBERS) ------------------------------------------------------------------------------------------------------------------------------------ FILE WITH COURT AND SUBMIT COPY TO UNITED STATES TRUSTEE WITHIN 20 DAYS AFTER END OF MONTH Submit copy of report to any official committee appointed in the case.

Page 2 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CURRENT CUMULATIVE MONTH FILING TO DATE ACTUAL ACTUAL -------------------------------------------------------------------------------- CASH - BEGINNING OF MONTH * $ 3,404,274 $ 938,508 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- RECEIPTS: -------------------------------------------------------------------------------- Collection of Accounts Receivable 29,184 11,742,121 -------------------------------------------------------------------------------- Asset Sale Proceeds -- 5,905,707 -------------------------------------------------------------------------------- Other 620,556 5,581,776 -------------------------------------------------------------------------------- TOTAL RECEIPTS 649,740 23,229,605 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- DISBURSEMENTS: -------------------------------------------------------------------------------- Payroll and Related Benefits 60,263 5,523,400 -------------------------------------------------------------------------------- Travel and Entertainment 2,873 80,096 -------------------------------------------------------------------------------- Insurance 24,080 187,055 -------------------------------------------------------------------------------- Utilities 513,790 9,633,543 -------------------------------------------------------------------------------- Occupancy 29,570 705,021 -------------------------------------------------------------------------------- Other 2,407 2,407 -------------------------------------------------------------------------------- G&A 79,999 4,695,558 -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS 712,982 20,827,080 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- NET CASH FLOW (63,242) 2,402,525 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- CASH - END OF MONTH $ 3,341,033 $ 3,341,033 -------------------------------------------------------------------------------- * Ending Cash includes $314,708 of restricted cash related to Applied Theory Estate, (HSBC account). THE FOLLOWING SECTION MUST BE COMPLETED -------------------------------------------------------------------------------- DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES (FROM CURRENT MONTH COLUMN) -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS $ 712,982 -------------------------------------------------------------------------------- Less: Transfers to Debtor In Possession Accounts -------------------------------------------------------------------------------- Plus: Estate Disbursements Made by Outside Sources (i.e. from escrow accounts) -------------------------------------------------------------------------------- TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES $ 712,982 -------------------------------------------------------------------------------- Page 3 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. STATEMENT OF OPERATIONS ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- CUMULATIVE APRIL FILING TO DATE -------------------------------------------------------------------------------- Net Revenues $ 120,214 $ 14,740,271 Cost of Sales 132,240 10,780,696 ----------------------------- GROSS MARGIN $ (12,026) $ 3,959,575 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: Marketing & Selling Expenses $ -- $ 932,600 G&A Payroll Expenses 71,945 3,744,969 Occupancy Expenses 12,714 381,894 Bankruptcy Expenses 176,724 2,490,363 General and Administrative Expenses 26,176 3,614,884 Depreciation and Amortization -- 2,594,695 ----------------------------- TOTAL SG&A EXPENSES $ 287,559 $ 13,759,404 ----------------------------- OPERATING INCOME (LOSS) $ (299,585) $ (9,799,829) OTHER INCOME (EXPENSE): Interest Expense $ -- $ 3,720,371 Interest Income 2,020 (24,716) Other 119,364 (6,472,156) Impairment / Restructuring Charges -- 17,053,482 ----------------------------- TOTAL OTHER INCOME (EXPENSE) $ 121,384 $ 14,276,981 ----------------------------- NET INCOME INCLUDING REORGANIZATION ITEMS $ (178,201) $ 4,477,152 ================================================================================ REORGANIZATION ITEMS: Professional Fees $ 176,724 $ 2,479,113 U.S. Trustee Quarterly Fee -- 11,250 Interest Earned on Accumulated Cash from Ch.11 -- -- Gain (Loss) From Sale of Equipment -- -- Gain on pre-petition real estate valuation -- -- ----------------------------- TOTAL REORGANIZATION ITEMS $ 176,724 $ 2,490,363 Page 5 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. BALANCE SHEET ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT ASSETS REPORTING MONTH -------------------------------------------------------------------------------- CURRENT ASSETS Cash & Cash Equivalents $ 3,026,430 Restricted Cash 314,603 Accounts Receivable 3,911,577 Less: Allowance for doubtful accounts 2,570,770 -------------- NET ACCOUNTS RECEIVABLE 1,340,807 Prepaid and Other Current Assets 446,234 Notes and Other Receivables - US Lec 1,485,519 Property and Equipment, net 23,183 Other Assets 1,184,809 -------------- TOTAL ASSETS $ 7,821,584 ================================================================================ -------------------------------------------------------------------------------- BOOK VALUE AT END OF CURRENT LIABILITIES & STOCKHOLDERS' EQUITY REPORTING MONTH -------------------------------------------------------------------------------- LIABILITIES NOT SUBJECT TO COMPROMISE: Accounts Payable $ 489,181 Other Accrued Liabilities 3,572,817 Deferred Revenue 763,756 -------------- 4,825,754 Other Liabilities 13,662 -------------- TOTAL POSTPETITION LIABILITIES 4,839,416 DUE TO RELATED COMPANIES 12,088,214 LIABILITIES SUBJECT TO COMPROMISE: Secured Debt 85,513 Priority Debt 279,800 Unsecured Debt 15,892,469 -------------- TOTAL PRE-PETITION LIABILITIES 16,257,783 STOCKHOLDERS' EQUITY: Common and Preferred Stock 78,434,584 Note Receivable (75,880) Accumulated deficit (102,295,281) Treasury Cost (1,427,252) -------------- TOTAL SHAREHOLDERS EQUITY (25,363,829) -------------- TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $ 7,821,584 ================================================================================ Page 6 of 8 UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF PENNSYLVANIA In re: FN Estate, Inc. Case No. 03-23143 Debtors. Reporting Period: April, 2004 FN Estate, Inc. ACCOUNTS RECEIVABLE RECONCILIATION AND AGING ($ IN REAL NUMBERS) -------------------------------------------------------------------------------- ACCOUNTS RECEIVABLE RECONCILIATION AMOUNT ------------------------------------------------------------------ ------------ Total Accounts Receivable at the beginning of the reporting period $ 3,878,927 + Amounts billed during the period 47,493 - Amounts collected during the period (19,889) + Adjustments (Credit Memos, Debit Memos, journal entries) 5,045 + Other Adjustments -- ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE AT THE END OF THE REPORTING PERIOD $ 3,911,577 ================================================================================ ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE AGING AMOUNT ------------------------------------------------------------------ ------------ 0 - 30 days old $ 169,004 31 - 60 days old 167,861 61 - 90 days old 283,488 91+ days old 3,291,224 ------------------------------------------------------------------ ------------ TOTAL ACCOUNTS RECEIVABLE 3,911,577 Amount considered uncollectable (Bad Debt) (2,570,770) ------------------------------------------------------------------ ------------ ACCOUNTS RECEIVABLE (NET) (EXCLUDING ACCRUALS) $ 1,340,807 ------------------------------------------------------------------ ------------ DEBTOR QUESTIONNAIRE Please provide an explanation below for any yes answers. -------------------------------------------------------------------------------- MUST BE COMPLETED EACH MONTH YES NO ------------------------------------------------------- ----- ----- 1. Have any assets been sold or transferred outside the normal course of business this reporting period? X ------------------------------------------------------- ----- ----- 2. Have any funds been disbursed from any account other than a debtor in possession accounts this reporting period? X ------------------------------------------------------- ----- ----- 3. Have any prepetition taxes been paid during the reporting period? X ------------------------------------------------------- ----- ----- 4. Have all postpetition tax returns been timely filed? X ------------------------------------------------------- ----- ----- 5. Are any postpetition real estate taxes past due? X ------------------------------------------------------- ----- ----- 6. Are any postpetition state or federal income taxes past due? X ------------------------------------------------------- ----- ----- 7. Are any postpetition payroll taxes past due? X ------------------------------------------------------- ----- ----- 8. Are any other postpetition taxes past due? X ------------------------------------------------------- ----- ----- 9. Are any amounts owed to postpetition creditors past due? X ------------------------------------------------------- ----- ----- 10. Have any postpetition loans been received by the debtor from any party? X ------------------------------------------------------- ----- ----- 11. Have any payments been made on prepetition liabilities this reporting period? X ------------------------------------------------------- ----- ----- 12. Are any wage payments past due? X ------------------------------------------------------- ----- ----- 13. Are any postpetition receivable (accounts, notes, or loans) due from related parties? X ------------------------------------------------------- ----- ----- EXPLANATIONS: -------------------------------------------------------------------------------- 1. Assets were sold in transactions approved by the Bankruptcy Court. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Page 8 of 8

FN ESTATE INC 8-K